Section 59 — Property (Relationships) Act 1976: Payment of protected interest where estate insolvent

59 Payment of protected interest where estate insolvent (1) This section applies in the following cases: (a) if, after the death of a spouse or partner, the family home (including a homestead) or, if section 11A applies, the proceeds of the sale of the family home vest in an appointee (within the meaning of section 378(1) of the Insolvency Act 2006) on an order being made under section 379 of that Act to administer the estate of a deceased spouse or partner under Part 6 of that Act: (b) if, after the death of a spouse or partner, the family home (including a homestead) or, if section 11A applies, the proceeds of the sale of the family home may be dealt with in accordance with section 31 of the Administration Act 1969 . (2) If this section applies, the appointee (in any case where subsection (1)(a) applies) or the administrator of the estate of the deceased spouse or partner (in any case where subsection (1)(b) applies) must pay to the surviving spouse or partner the lesser of— (a) the amount of the protected interest of the surviving spouse or partner; or (b) so much of that amount as remains after the appointee or, as the case requires, the administrator has paid the debts specified in subsection (3) . (3) The debts referred to in subsection (2)(b) are as follows: (a) any debts secured on the family home or homestead or, as the case may be, the proceeds of sale of the family home: (b) any unsecured debt incurred— (i) by the spouses or partners jointly; or (ii) by the deceased spouse or partner, for the purpose of acquiring, improving, or repairing the family home. (4) If, in any case to which this section applies, section 11B applies, the appointee or, as the case requires, the administrator must pay to the surviving spouse or partner such amount in satisfaction of the protected interest of that spouse or partner as the Court may direct, on application by the appointee or the administrator (as the case requires) or on application by the surviving spouse or partner. Sections 55 to 57 were repealed, and new Part 8 (comprising sections 55 to 95) and Part 9 (comprising sections 96 to 99) were inserted, as from 1 February 2002, by section 61 Property (Relationships) Amendment Act 2001 (2001 No 5). See Part 9 of this Act as to the transitional and saving provisions. Section 59 was amended, as from 26 April 2005, by section 3(2) Property (Relationships) Amendment Act 2005 (2005 No 19) by substituting the word “ partner ” for the words “ de facto partner ” wherever they appear. Section 59(1)(a): substituted, on 3 December 2007, by section 445 of the Insolvency Act 2006 (2006 No 55). Subsection (3)(b)(i) was amended, as from 26 April 2005, by section 3(1) Property (Relationships) Amendment Act 2005 (2005 No 19) by substituting the word “ partners ” for the words “ de facto partners ” .